Applied Materials (NASDAQ:AMAT) Shares Gap Up – Here’s What Happened

Shares of Applied Materials, Inc. (NASDAQ:AMAT) gapped up before the market opened on Tuesday . The stock had previously closed at $525.70, but opened at $564.95. Applied Materials shares last traded at $558.5640, with a volume of 1,005,525 shares trading hands.

Applied Materials News Roundup

Here are the key news stories impacting Applied Materials this week:

• Positive Sentiment: Applied Materials benefited from renewed optimism around chipmaking capacity and AI demand after Taiwan Semiconductor raised chipmaking prices and another supplier lifted guidance, reinforcing expectations for continued equipment spending across the sector. Why Applied Materials (AMAT) Stock Is Up Today
• Positive Sentiment: Applied Materials’ installed base services business is generating recurring revenue growth, with Applied Global Services revenue rising year over year, which supports margins and provides more predictable cash flow. Is AMAT’s Installed Base Business Built for Long-Term Growth?
• Positive Sentiment: Technical commentary suggests AMAT may be ripe for a rebound after a short losing streak, indicating some traders see the recent pullback as temporary rather than a change in fundamentals. History Says Applied Materials Stock Looks Ripe for Rebound
• Neutral Sentiment: Some broader market commentary flagged AMAT as a stock to watch, but the article mainly focused on general index leadership and did not point to a new company-specific catalyst. 2 S&P 500 Stocks to Keep an Eye On and 1 We Avoid
• Negative Sentiment: AMAT has also seen near-term weakness after a strong run, with recent sessions showing multiple losses as investors may be locking in gains. History Says Applied Materials Stock Looks Ripe for Rebound
• Negative Sentiment: One recent market recap noted that Applied Materials traded lower versus the broader market, reflecting the stock’s short-term volatility rather than a fundamental deterioration. Applied Materials (AMAT) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Analysts Set New Price Targets

A number of research firms have weighed in on AMAT. Bank of America upped their target price on Applied Materials from $540.00 to $720.00 and gave the stock a “buy” rating in a report on Tuesday, June 23rd. Barclays boosted their price target on Applied Materials from $500.00 to $590.00 and gave the stock an “overweight” rating in a research report on Thursday, June 11th. Royal Bank Of Canada upped their price objective on Applied Materials from $500.00 to $520.00 and gave the stock an “outperform” rating in a research note on Friday, May 15th. Stifel Nicolaus raised their price objective on Applied Materials from $530.00 to $650.00 and gave the company a “buy” rating in a research report on Friday, July 10th. Finally, Needham & Company LLC lifted their target price on Applied Materials from $530.00 to $740.00 and gave the company a “buy” rating in a research note on Friday, July 10th. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $593.84.

Applied Materials Trading Down 1.9%

The company’s 50 day simple moving average is $539.78 and its two-hundred day simple moving average is $420.23. The company has a quick ratio of 1.80, a current ratio of 2.51 and a debt-to-equity ratio of 0.22. The company has a market capitalization of $439.79 billion, a price-to-earnings ratio of 52.01, a P/E/G ratio of 1.43 and a beta of 1.57.

Applied Materials (NASDAQ:AMAT) last issued its quarterly earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.68 by $0.18. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The business had revenue of $7.91 billion for the quarter, compared to the consensus estimate of $7.68 billion. During the same period in the prior year, the firm posted $2.39 earnings per share. The business’s quarterly revenue was up 11.4% on a year-over-year basis. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. As a group, research analysts anticipate that Applied Materials, Inc. will post 12.14 earnings per share for the current fiscal year.

Applied Materials Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be paid a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a yield of 0.4%. The ex-dividend date is Thursday, August 20th. Applied Materials’s payout ratio is 19.91%.

Insider Activity at Applied Materials

In other news, CEO Gary E. Dickerson sold 71,727 shares of the business’s stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $593.75, for a total transaction of $42,587,906.25. Following the sale, the chief executive officer owned 1,695,164 shares in the company, valued at approximately $1,006,503,625. The trade was a 4.06% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Omkaram Nalamasu sold 24,263 shares of the business’s stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $593.43, for a total value of $14,398,392.09. Following the sale, the senior vice president owned 146,916 shares in the company, valued at $87,184,361.88. The trade was a 14.17% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 278,088 shares of company stock worth $169,654,805 over the last ninety days. Corporate insiders own 0.30% of the company’s stock.

Institutional Trading of Applied Materials

Institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. increased its stake in Applied Materials by 0.4% during the 4th quarter. Vanguard Group Inc. now owns 76,779,340 shares of the manufacturing equipment provider’s stock valued at $19,731,523,000 after purchasing an additional 330,197 shares in the last quarter. Capital Research Global Investors lifted its stake in shares of Applied Materials by 119.8% during the fourth quarter. Capital Research Global Investors now owns 32,707,049 shares of the manufacturing equipment provider’s stock worth $8,405,458,000 after buying an additional 17,829,377 shares during the period. Morgan Stanley lifted its stake in shares of Applied Materials by 3.4% during the fourth quarter. Morgan Stanley now owns 11,470,835 shares of the manufacturing equipment provider’s stock worth $2,947,891,000 after buying an additional 373,012 shares during the period. Norges Bank purchased a new stake in shares of Applied Materials during the fourth quarter valued at $2,858,543,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in shares of Applied Materials by 17.1% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 10,688,232 shares of the manufacturing equipment provider’s stock valued at $2,746,769,000 after buying an additional 1,558,749 shares during the last quarter. 80.56% of the stock is currently owned by institutional investors and hedge funds.

About Applied Materials

Applied Materials, Inc is a U.S.-based supplier of equipment, services and software used to manufacture semiconductor chips, flat panel displays and other advanced materials. Headquartered in Santa Clara, California, the company designs and sells capital equipment and related technologies that enable production of integrated circuits, display panels and materials used across the electronics supply chain.

Applied Materials’ offerings include process equipment and factory software that support critical steps in device fabrication, such as deposition, etch, implantation, inspection and metrology, as well as systems for packaging and advanced heterogeneous integration.